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Lattice Semiconductor (LSCC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Lattice Semiconductor (LSCC) closed at $19.48 in the latest trading session, marking a -1.81% move from the prior day. This change lagged the S&P 500's daily loss of 0.49%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.8%.

Prior to today's trading, shares of the chipmaker had lost 0.7% over the past month. This has lagged the Computer and Technology sector's gain of 3.08% and the S&P 500's gain of 3% in that time.

Investors will be hoping for strength from LSCC as it approaches its next earnings release. In that report, analysts expect LSCC to post earnings of $0.15 per share. This would mark year-over-year growth of 36.36%. Our most recent consensus estimate is calling for quarterly revenue of $103 million, up 1.5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.57 per share and revenue of $407.89 million, which would represent changes of +72.73% and +2.28%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LSCC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LSCC currently has a Zacks Rank of #2 (Buy).

Digging into valuation, LSCC currently has a Forward P/E ratio of 34.96. For comparison, its industry has an average Forward P/E of 19.67, which means LSCC is trading at a premium to the group.

Also, we should mention that LSCC has a PEG ratio of 2.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 2.04 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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